On Thursday, investors shifted away from technology stocks, moving into so-called "old economy" shares. Earnings from Broadcom applied a brake to the artificial intelligence frenzy.

The Nasdaq 100 index closed down 0.5% in New York, after falling as much as 1.6% during the session, marking its second consecutive day of declines.

The S&P 500 index rose 0.4%, positioning it for a potential tenth straight weekly gain.

The Dow Jones Industrial Average, dominated by traditional blue-chip stocks like JPMorgan Chase and Coca-Cola, reached a new all-time high.

Shares of Broadcom tumbled 13% after the chip giant issued an AI chip revenue forecast that fell short of market expectations.

Due to Broadcom's disappointing outlook, investors began to retreat from the AI trade that had fueled the U.S. stock market's gains over recent weeks.

Adding to concerns was a statement from Taiwan Semiconductor Manufacturing Company indicating that global chip supply remains insufficient to meet demand driven by artificial intelligence.

The main issue for technology stocks is that market expectations had become excessively high. The earnings reports released over the past few days were not fundamentally bad, but after weeks of near-parabolic gains and market euphoria, the bar had been set unrealistically high.

In other news, the U.S. House of Representatives passed a resolution to halt the war in Iran. While this resolution still requires Senate approval and is thus unlikely to immediately impact military operations, the vote highlights growing opposition to a prolonged conflict.

The job market was another focus for traders this week, with initial U.S. jobless claims rising to their highest level since February last week, a move that may reflect volatility around the Memorial Day holiday.

At the close, the S&P 500 was up 0.4% at 7,584.31 points.

The Dow Jones Industrial Average gained 1.7% to 51,561.93 points.

The Nasdaq Composite Index dipped 0.1% to 26,830.96 points.

The Nasdaq 100 Index fell 0.5% to 30,407.81 points.

The Russell 2000 Index rose 1.4% to 2,935.327 points.